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Barrett Reducing Their New Builds By 40 % !


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MR GAL BEAR rang me just now and said he had heard from a friend at work who is househunting (silly fool!) that BARRETTS are offering 40% reductions off their homes.

I have not seen anything in the press or on here about this.

Can't be true surely to God !

Though I reckon they should be or they are not going to be sellng ANTHING over the next few months !

Has anyone heard this at all?

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in previous recessions builders rode it out by sitting on land banks and reducing building by 50% or thereabouts. However, in the brave new world of finance, having leveraged the land bank to death in order to carry on building, they're stuffed. They (builders) will have to have fire sales, all of them. They can forget all this nosense of new fridges, mortgage paid for a year and 5% off the sticker price... it isn't gonna wash and they cannot survive on the sales they are currently generating.

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Property has been in a speculative bubble and no property more so than 1 and 2 bed flats built specifically for the speculative market. You only have to look back at historical speculative bubbles to realise that when, say, a tulip bulb ceases to attract a speculative premium, it is worth nothing more than its intrinsic capacity to produce a flower.

Flats built for the speculative market will have no more value than their capacity to provide a roof over the head - and since there are hundreds of thousands of them, and the demand for one and two bed flats has been artificially driven by speculators, not those looking for a roof over the head, their intrinsic worth is likely to be far less than than even Barrat's 40% discount points to.

I wouldn't touch a 1 or 2 bed flat with Monopoly money, never mind real money and/or mortgage debt.

Edited for typo

Edited by Methinkshe
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Alastair Stewart, an analyst with Dresdner Kleinwort, said: "Prices of urban apartments appear to have fallen in many cases by 40 per cent to 50 per cent, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless."

The bank also claimed that the six leading property agents in Leeds have between them sold just six new apartments in two months.

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can you put any more meat on that bone, where, how much...?

I havn't had a chance to 'quiz' MR GAL BEAR over this yet as he had to rush into a meeting.

Will find out a bit more lately and if relevent will update this thread.

I think the person must have got the wrong end of the stick as surely BARRETTS wouldn't admit defeat now and reduce ny that much so early in the game.

Still this time next year they probably WILL have reduced theirs rabbit hutches by this much if not more! :P

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I think the person must have got the wrong end of the stick as surely BARRETTS wouldn't admit defeat now and reduce ny that much so early in the game.

Maybe the choice they have is

1. Sit on empty stock and grind to a halt

2. Sell at a discount and get some capital back into the company

They have little or no sales, however the overheads don't just suddenly stop.

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Hmm newbuild houses typically have a 30ish% profit margin. So a 40% reduction (on anything that is not a flat) could be the first step on Barretts road to defeat.

It's simple.

xxxx houses are going to be sold between now and christmas.

Barrats can sell a small share of those xxxx houses or they can slash their prices and most of the xxxx sales will be Barrats homes.

Prisoners Dimlema, a Game of Chicken, a Quickdraw Shootout.... call it what you will. Barrats just blinked.

All bets are now officially off.

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Hmm newbuild houses typically have a 30ish% profit margin. So a 40% reduction (on anything that is not a flat) could be the first step on Barretts road to defeat.

I think that you may find with many house builders that taking a loss on a property will take back seat to maintaining cashflow.

I work in commercial construction and cashflow is king!

Q

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It's simple.

xxxx houses are going to be sold between now and christmas.

Barrats can sell a small share of those xxxx houses or they can slash their prices and most of the xxxx sales will be Barrats homes.

Prisoners Dimlema, a Game of Chicken, a Quickdraw Shootout.... call it what you will. Barrats just blinked.

All bets are now officially off.

I like the cut of your jib :D

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I like the cut of your jib :D

Thankyou. I'm now officially changing my prediction to 40% down from peak by christmas.

Everyone has been holding out to get the best price possible.

Now one builder has blinked, with days they all will. They wont have any choice unless they want to see Barratts take every single new-build customer in the market. And with new-builds dropping, used home sellers will have to slash prices to match.

Make no mistake - this is a watershed. Everything changes now.

Edited by TaxAbuserOfTheWeek
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Looks like it. It was on BBC earlier and they were saying it was only if you bought 5 or more. It will surely set a market price at that level though.

yep, buy 5 of their flats, knock through and you have a family home for 4.... just.

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yep, buy 5 of their flats, knock through and you have a family home for 4.... just.

But look on the bright side - every bedroom will have an ensuite! :lol:

Q

edit: grammar before the gnazi's get it!

Edited by Quoth
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I think that you may find with many house builders that taking a loss on a property will take back seat to maintaining cashflow.

I work in commercial construction and cashflow is king!

Q

In a roundabout way that is what I was trying to say. The clinging on to 2007 prices is now over and survival is the name of the game for housebuilders.

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I think that you may find with many house builders that taking a loss on a property will take back seat to maintaining cashflow.

I work in commercial construction and cashflow is king!

Q

Theres Tons of commercial property sitting empty all round the country, any idea why companies kept the construction going ?

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hi

barrett are still making redundancies as my son who works for barrett as apprentice plumber he was in is second year at 17 has today been made redundant , his dad is a site agent and has been changed over to david wilson homes as barrett joind these at the begining of the year but at least he is still lucky enough to have his job

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  • 442 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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